KakaoBank (323410) Q3 2024 earnings summary

Executive summary

• Achieved record operating profit of ₩173.7 billion in Q3 2024, up 36% year-over-year, driven by strong customer engagement and growth in fee and platform business.

• Customer base reached 24.43 million, with MAU and WAU at all-time highs following the August launch of the benefits tab and home screen renewal.

Financial highlights

• Operating revenue for Q3 was ₩746.3 billion, up 14% year-over-year and 2% quarter-on-quarter, supported by growth in interest, fee, and platform revenues.

• Net profit increased 30% year-over-year and 3% quarter-on-quarter to ₩124.2 billion; cost-to-income ratio improved to 34.9%.

• Deposit balance totaled ₩54.3 trillion, up 18.9% year-over-year and 2% quarter-on-quarter, with low-cost demand deposits rising to 57.9% of the mix.

• Loan balance reached ₩44.5 trillion, up 16.4% year-over-year and 1% quarter-on-quarter, led by SOHO and unsecured personal loans.

• Net interest margin (NIM) was 2.15%, down 2 basis points from Q2 due to lower loan yields.

Outlook and guidance

• Expects continued growth in traffic and platform-driven business as new services expand.

• Plans to increase the number of financial partners and expand loan comparison services to include home mortgage loans, aiming for significant revenue growth.

• Anticipates similar SOHO loan growth in 2025, supported by new product launches and strong partnerships with regional credit guarantee foundations.

• Ongoing international expansion, with Superbank in Indonesia surpassing 2 million customers and a virtual bank license application submitted in Thailand.

• Credit cost for full-year 2024 expected to improve to around 0.65–0.66%, down from 0.75% in 2023.